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The BenefitsLink Newsletter -
Retirement Plans Edition
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Computer Upgrade Went Haywire Here;
Sorry for This Delay! -- Editor

June 25 and 26, 2002 - 11,391 subscribers
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IRS Rules Restorative Payments to Pension Trusts Are Non-Deductible But Don't Count Towards Sec. 415
Revenue Ruling 2002-45. Excerpt: "A payment made to a qualified defined contribution plan is not treated as a contribution to the plan ... if the payment is made to restore losses to the plan resulting from actions by a fiduciary for which there is a reasonable risk of liability for breach of a fiduciary duty under Title I of [ERISA] and plan participants who are similarly situated are treated similarly with respect to the payment." (Internal Revenue Service)

Cash Balance Plan Being Offered To United Technology Employees
Excerpt: "About half of the 28,800 people UTC employs in Connecticut will have the choice of converting their traditional pension plan into a cash-balance plan.... The announcement of the pension plan alternative for existing employees comes as UTC prepares to make cash-balance plans the only pension program available to new hires at the company. That will happen on July 1 ..." (New Haven Register)

Illinois Governor Approves Early Retirement Plan To Cut Costs
Excerpt: "Gov. George Ryan today signed a law making it easier for state employees to retire early -- a move that could save the state $64.5 million. Officials estimate that 7,365 employees-- about one-third of those eligible-- will take the early retirement incentive." (Chicago Tribune)

Lower-Wage Workers Lack Adequate 401(k) Investor Aggressiveness
Excerpt: "When it comes to their investing in 401(k) plans, many workers are letting their fear of losing a little get in the way of earning a lot -- a decision that could cost them dearly in retirement." (San Francisco Chronicle)

PBGC Issues New Edition of Data Book
Excerpt: "The Pension Benefit Guaranty Corporation (PBGC) today issued a new edition of its annual statistical reference book, which provides detailed statistics for PBGC's two separate insurance programs covering single-employer and multiemployer plans." (Pension Benefit Guaranty Corporation)

Federal Pensions: Judicial Survivors' Annuities System Costs
18 pages. Excerpt: "[T]he Judicial Survivors' Annuities System (JSAS) ... is one of several survivor benefit plans applicable to particular groups of federal employees. JSAS provides annuities to surviving spouses and dependent children of deceased Supreme Court Justices, judges of the United States, and other judicial officials who participate in JSAS. The 1992 act ... requires us to review JSAS costs every 3 years ..." (U.S. General Accounting Office)

Links to Items on Executive Comp, Benefits in General
(These items appear in both editions of the BenefitsLink Newsletter)

IRS Delays Payroll Tax Rules on ESPPs, ISOs; House Votes to Make DC Limits Permanent
In a major development in the stock plan field, the IRS has indefinitely delayed implementation of its highly controversial proposal to impose payroll taxes on incentive stock options and Section 423 employee stock purchase plans. In other news, the House of Representatives voted to make permanent the higher limits on defined contribution plans (such as ESOPs and 401(k) plans) enacted in the 2001 tax bill. (National Center for Employee Ownership)

IRS Puts Stock Option Employment Taxes on Hold
Excerpt: "The Internal Revenue Service, bowing to pressure from Congress and corporations, [on Tuesday June 25] indefinitely postponed new rules to impose Social Security and other payroll taxes on the stock options that are often given to executives." (Washington Post)

Newly Posted or Renewed Job Openings - Post a Help Wanted Ad
Qualified Plan Administrator for Campbells Administration Inc.
in CA
Retirement Plan Consultants for RSM McGladrey, Inc.
in CT, IA, IL, MN, WA
Employee Benefits Consultant for Fidelity Investments
in KY, MA, TX
Pension Sales for Sentry Insurance - A Mutual Company
in IN, OH
Sr. Operations Manager for CitiStreet
in FL
Implementation Specialist for CitiStreet
in FL
Director of Relationship Management-LLY for A Prestigious Consulting Company
in CA
Pension Administrator for Pension Associates
in CT
Defined Contribution Administrator for Howard A. Feinstein & Associates, Inc.
in IL
Senior 401(k) Administrator for The Pension Group, Inc.
in CA
Client Integration Senior Consultant for Diversified Investment Advisors
in NY
Account Manager for National Retirement Services, Inc.
in NC
Chief Accountant, ES-510 for U.S. Department of Labor, Pension and Welfare Benefits Administration
in DC
Corporate Benefits Administrator for Phillips-Van Heusen Corporation
in NJ
Senior Implementation Specialist for Mellon HR Solutions
in NJ
Sr Retirement Services Specialist for Chemung Canal Trust Company
in NY
Compliance Analyst for Transamerica
in CA
Client Services Consultant for American United Life Insurance Company
in FL
DC Administrator for Northern CA TPA
in CA
Plan Administrator for Retirement Funding
in MI

Newly Posted Press Releases
myCafeteriaPlan.com announces Flex Debit Card for 125 Cafeteria Plans (myCafeteriaPlan.com - a division of BusinessPlans, Inc.)
Captive Insurance Council of DC Supports Terrorism Insurance Legislation-Urges Cut Off Date Deletion (Captive Insurance Council of the District of Columbia, Inc.)
Unique Features in IRS-Approved DATAIR Defined Benefit Volume Submitter Plan (DATAIR Employee Benefit Systems, Inc.)
Arioso Corporation and Riverwood Solutions Combine Marketing Efforts to Better Automate Insurance Industry Tools. (Arioso)
Search401k Partners with 12 More 401(k) Plan Providers and Adviser Groups in 2002 (Search401K)
AHIís Benefits Alert Releases New Free Report: Benefits Brouhahas: Legal Liabilities Abound In ERISA, HIPAA, COBRA, and FMLA (Alexander Hamilton Institute - AHI's Benefits Alert)

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Editor and Publisher: David Rhett Baker, J.D.